SDA Allowance Increased to R2 Million Per Annum — Effective Immediately
Following the release of the South African 2026 Budget Review, SARS has announced a significant update to exchange control and foreign currency allowances, including an immediate increase in the annual offshore transfer limits for individuals.
Annual SDA allowance increased
The most notable change for private individuals is the immediate increase to the Single Discretionary Allowance (SDA), which has been raised from R1 million to R2 million per calendar year. This adjustment, made by the National Treasury to account for inflation and currency fluctuations, now allows transfers within this limit without requiring a prior SARS tax clearance certificate from the SARB.
Foreign Investment Allowance unchanged
The Foreign Investment Allowance (FIA) for individuals remains at R10 million per year, with a SARS-approved International Transfer (AIT) Tax Compliance Status (TCS) pin. As always, CAPTA Forex is happy to handle the Foreign Tax Clearance application for you at no cost.
What this means for you
South African residents can now legally transfer up to R12 million offshore per year, offering greater flexibility to diversify funds internationally. This allowance covers all discretionary purposes, including foreign investments, travel, gifts, remittances, and donations. The additional SDA allowance is available immediately, without needing a Tax Compliance Status (TCS) PIN from SARS.
Other notable exchange control changes
For those travelling, the limit for South African bank notes you may carry when entering or exiting the country has been raised from R25,000 to R100,000.
Market update
Markets have responded positively to the budget announcement. The USD–ZAR is currently trading around 15.8550, with the rand appreciating modestly. This presents an attractive opportunity to utilise your expanded SDA while exchange rates remain favourable. Should you wish to take advantage of these enhanced allowances, our team is available to assist with the immediate structuring and execution of your offshore transfers. For assistance, please call our trading desk on 011 568 4446.
Disclaimer: This commentary is provided for informational purposes only and does not constitute financial advice. Exchange rates are indicative and subject to change. Past performance is not indicative of future results. Please consult with a CAPTA Forex specialist before making any foreign exchange decisions.
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